Rowe Hooper Insurance and Investment Brokers has been fined RAND150,000 ($11,075, €10,000, £7,230,) by South Africa’s enforcement committee at the Financial Services Board (FSB).
Between November 2012 and June 2014 the firm’s advisers failed to conduct an analysis on clients to assess their suitability for products and failed to ensure clients were given appropriate advice prior to taking up insurance policies.
Rowe Hooper had records which claimed advice had been given to clients, when in reality the clients has never received the advice.
Evidence also revealed the company went into business with an individual who was not authorised to work in that sector of financial services.
Wrongful conduct
The penalty was imposed on Tuesday and includes the profits derived from the wrongful conduct.
The contravention was said to be a result of the firm’s misunderstanding regarding the application of the relevant legislation.
According to the FSB, Rowe Hooper did not intend to prejudice clients who had been sold insurance policies through its advisers recommendations.
When the company became aware of its wrongful conduct its officers were said to have “acted promptly by rectifying the non-compliance”.
